My only experience with this was when I moved from Virginia to New York, and my license was in limbo. They took my VA licenses, and gave me some paper. I was able to rent at Hertz with the paper chit.
On the other hand, I have ALWAYS been asked for ID and have ALWAYS given my license. Out of curiosity, I will offer my passport the next few times and see how many times I am asked for a drivers license, and report back.
albatross